LAKE SUCCESS, N.Y.,
Aug. 28, 2018 /PRNewswire/
-- The Hain Celestial Group, Inc. (Nasdaq: HAIN) ("Hain
Celestial" or the "Company"), a leading organic and natural
products company with operations in North
America, Europe,
Asia and the Middle East providing consumers with A
Healthier Way of Life™, today reported financial results for the
fourth quarter and fiscal year ended June
30, 2018. The results contained herein are presented with
the Hain Pure Protein operating segment being treated as a
discontinued operation given the Company's previously announced
decision to divest the business, which is expected to be completed
during the first half of fiscal year 2019.
"We continued to execute on our global strategic objectives,
with marketing investments in our core brands and incremental
savings and productivity through Project Terra, although a number
of cost and operational headwinds in the
United States impacted our consolidated annual results,"
said Irwin D. Simon, Founder,
President and Chief Executive Officer of Hain Celestial. "Our top
priorities in fiscal year 2019 are to return our United States business to growth and to
generate increased profitability. We remain optimistic that
the aggressive strategic changes and investments in our
go-to-market strategy will fuel our future results and value for
our stockholders."
FINANCIAL HIGHLIGHTS1
Summary of Fourth Quarter Results from Continuing
Operations2
- Net sales increased 3% to $619.6
million compared to the prior year period, or a 1% decrease
on a constant currency basis, primarily reflecting low double digit
net sales increases from the United
Kingdom and Rest of World reporting segments, which includes
the Canada and Europe operating segments, partially offset by
a mid-single digit net sales decrease from the United States reporting segment. When
adjusted for Foreign Exchange and Acquisitions, Divestitures and
certain other items, including the 2017 and 2018 Project Terra
Stock Keeping Unit ("SKU") rationalization3, net sales
would have increased 3% compared to the prior year period.
- Gross margin of 20.2%, a 370 basis point decrease over the
prior year period; adjusted gross margin of 21.1%, a 290 basis
point decrease over the prior year period as a result of higher
trade and promotional investments in the
United States and increased freight and commodity
costs.
- Operating income of $16.6
million, an increase of $9.4
million over the prior year period; adjusted operating
income of $44.5 million, a
$21.3 million decrease over the prior
year period.
- Net loss of $4.6 million, a
$3.1 million increase in net loss
over the prior year period; adjusted net income of $27.7 million, a $14.8
million decrease over the prior year period.
- EBITDA of $45.8 million, a 41%
decrease over the prior year period; Adjusted EBITDA of
$61.4 million, a 25% decrease over
the prior year period.
- Earnings per diluted share ("EPS") loss of $0.04 compared to an EPS loss of $0.01 in the prior year period; Adjusted EPS of
$0.27 compared to $0.41 in the prior year period.
Summary of Fiscal Year 2018 Results from Continuing
Operations
- Net sales increased 5% to $2.458
billion compared to the prior year, or 2% on a constant
currency basis, primarily reflecting low to mid double-digit net
sales increases from the United
Kingdom and Rest of World reporting segments, which includes
the Canada and Europe operating segments, partially offset by
a low single digit net sales decrease from the United States reporting segment. When
adjusted for Foreign Exchange and Acquisitions, Divestitures and
certain other items including the 2017 and 2018 Project Terra SKU
rationalization3, net sales would have increased 2%
compared to the prior year.
- Gross margin of 21.0%, a 120 basis point decrease over the
prior year; adjusted gross margin of 22.1%, a 40 basis point
decrease over the prior year as a result of higher trade and
promotional investments in Hain Celestial United States, increased
freight and commodity costs and unfavorable mix, partially offset
by Project Terra cost savings.
- Operating income of $106.0
million, a $3.4 million
decrease over the prior year; adjusted operating income of
$186.1 million, a $14.5 million decrease over the prior year.
- Net income of $82.4 million, a
$16.9 million increase over the prior
year; adjusted net income of $121.3
million, a $3.8 million
decrease over the prior year.
- EBITDA of $197.2 million, a 14%
decrease over the prior year; Adjusted EBITDA of $255.9 million, a 3% decrease over the prior
year.
- EPS of $0.79 compared to
$0.63 in the prior year; Adjusted EPS
of $1.16 compared to $1.20 in the prior year.
- Cash flow provided by operating activities from continuing
operations of $121.3 million;
operating free cash flow of $50.4
million.
SEGMENT HIGHLIGHTS FROM CONTINUING OPERATIONS
Hain Celestial United States
Hain Celestial United
States net sales in the fourth quarter decreased 6% over the prior
year period to $269.9 million; when
adjusted for Acquisitions, Divestitures and certain other items
including the 2017 and 2018 Project Terra SKU
rationalization3, net sales would have been generally
flat. Net sales growth from the Pure Personal Care platform was
offset by declines in other platforms. As previously discussed, the
decline in net sales was due in part to the strategic decision to
no longer support certain lower margin SKUs in order to reduce
complexity and increase gross margin over time, as the United States reporting segment continued
its focus on its top 500 SKUs, which disproportionately impacted
the other platforms. Segment operating income in the fourth quarter
was $18.6 million, a 56% decrease
from the prior year period, and adjusted operating income was
$23.2 million, a 45% decrease over
the prior year period, driven primarily by higher trade and
marketing investments to drive future period growth and increased
freight and logistics costs. The financial results for the current
period as well as the prior year fourth quarter results exclude the
United Kingdom operations of the
Ella's Kitchen® brand, thereby eliminating net sales of
approximately $25.3 million and
$23.6 million, respectively, as these
net sales are now reported as part of the United Kingdom reportable segment.
Hain Celestial United States net sales in fiscal year 2018
decreased 2% over the prior year to $1.085
billion; when adjusted for Acquisitions, Divestitures and
certain other items including the 2017 and 2018 Project Terra SKU
rationalization3, net sales would have decreased 1%. The
decrease in net sales was driven by declines in the Better-for-You
Snacking, Fresh Living and Better-for-You Pantry platforms,
partially offset by growth in the Pure Personal Care,
Better-for-You Baby and Tea platforms. The decline in net sales was
also due to the aforementioned fourth quarter fiscal 2018 items.
Segment operating income in fiscal year 2018 was $86.3 million, a 41% decrease from the prior
year, and adjusted operating income was $113.2 million, a 25% decrease over the prior
year, driven primarily by higher trade and marketing investments to
drive future period growth, increased freight and commodity costs
and unfavorable mix. The financial results for fiscal years 2018
and 2017 exclude the United
Kingdom operations of the Ella's Kitchen® brand, thereby
eliminating net sales of approximately $94.9
million and $83.5 million,
respectively, as these net sales are now reported as part of the
United Kingdom reportable
segment.
Hain Celestial United Kingdom
Hain Celestial United
Kingdom net sales in the fourth quarter increased 10% to
$239.1 million over the prior year
period, or 5% after adjusting for Foreign Exchange, Acquisitions
and Divestitures and certain other items3. The strong
results for the United Kingdom
segment were driven by 15% growth from Tilda®, 9% growth from Hain
Daniels and 8% growth from Ella's Kitchen®, or 9%, 4% and 1%
growth, respectively, after adjusting for Foreign Exchange,
Acquisitions and Divestitures and certain other items3.
Segment operating income was $19.0
million, a 9% decrease from the prior year period, and
adjusted operating income was $20.2
million, a decrease of 7% over the prior year period. The
financial results for the current period as well as the prior year
fourth quarter results include the United
Kingdom operations of the Ella's Kitchen® brand, which was
previously reported as part of the United
States reportable segment.
Hain Celestial United Kingdom net sales in fiscal year 2018
increased 10% to $938.0 million over
the prior year, or 5% after adjusting for Foreign Exchange,
Acquisitions and Divestitures and certain other items3.
The strong results for the United
Kingdom segment were driven by 14% growth from Tilda®, 9%
growth from Hain Daniels and 14% growth from Ella's Kitchen®, or
8%, 3% and 7% growth, respectively, after adjusting for Foreign
Exchange, Acquisitions and Divestitures and certain other
items3. Segment operating income in fiscal year 2018 was
$56.0 million, an 8% increase from
the prior year, and adjusted operating income was $70.3 million, an increase of 24% over the prior
year driven by strong contribution from the Hain Daniels brands. As
discussed above, the financial results for fiscal years 2018 and
2017 include the United Kingdom
operations of the Ella's Kitchen® brand, which was previously
reported as part of the United
States reportable segment.
Rest of World
Rest of World net sales in the fourth
quarter increased 12% to $110.7
million over the prior year period, or by 6% on a constant
currency basis. Net sales for Hain Celestial Europe grew 18%, or 8%
on a constant currency basis, driven by strong performance from the
Tilda®, Danival® and Joya® brands as well as own-label products.
Net sales for Hain Celestial Canada grew 9%, or 5% on a constant
currency basis, driven by strong performance from the Yves Veggie
Cuisine®, Alba Botanica®, Sensible Portions® and Live Clean®
brands. Segment operating income in the fourth quarter was
$8.1 million, a $2.0 million decrease from the prior year period.
Adjusted operating income was $9.9
million, a 2% decrease over the prior year period.
Rest of World net sales in fiscal year 2018 increased 13% to
$434.9 million over the prior year,
or by 7% on a constant currency basis. Net sales for Hain Celestial
Europe grew 19%, or 8% on a constant currency basis, driven by
strong performance from the Tilda®, Danival®, Joya®, as well as own
label products. Net sales for Hain Celestial Canada grew 13%, or 8%
on a constant currency basis, driven by strong performance from
Yves Veggie Cuisine®, Tilda®, Live Clean® and Sensible Portions®
brands. Segment operating income in fiscal year 2018 was
$38.7 million, a 21% increase from
the prior year, and adjusted operating income was $42.6 million, a 34% increase over the prior
year.
Hain Pure Protein Discontinued Operations
As
previously disclosed on May 5, 2018,
the results of operations, financial position and cash flows
related to the operations of the Hain Pure Protein business segment
have been moved to discontinued operations in the current and prior
periods. Net sales for Hain Pure Protein in the fourth quarter were
$113.2 million, a decrease of 7%
compared to the prior year period, primarily due to the shift in
timing of the Passover holiday. Segment operating loss in the
fourth quarter was $83.8 million and
included a $78.5 million pre-tax
non-cash impairment charge.
For fiscal year 2018, net sales for Hain Pure Protein were
$509.5 million, relatively flat
compared to the prior year. Segment operating loss for fiscal year
2018 was $78.3 million and includes a
$78.5 million pre-tax non-cash
impairment charge.
Fiscal Year 2019 Guidance
The Company provided its
annual guidance for continuing operations for fiscal year 2019:
- Total net sales of $2.500 billion
to $2.560 billion, an increase of
approximately 2% to 4% as compared to fiscal year 2018.
- Adjusted EBITDA of $275 million
to $300 million, an increase of
approximately 7% to 17% as compared to fiscal year 2018.
- Adjusted EPS of $1.21 to
$1.38, an increase of approximately
4% to 19% as compared to fiscal year 2018.
The Company expects growth in net sales, adjusted EBITDA, and
adjusted EPS to be weighted towards the second half of fiscal 2019
as it benefits from the planned Hain Celestial United States
strategic brand investments, distribution gains and price
optimization efforts. As a result of the continued strategic brand
investments and expected near-term cost headwinds, the Company
expects first quarter of fiscal 2019 net sales to be flat to
slightly down, adjusted EBITDA and adjusted EPS to be down
year-over-year on a percentage basis similar to the fourth quarter
of fiscal 2018. In addition, the timing of the annual global
Project Terra cost savings and productivity benefits that are
already in process is expected to accelerate as the fiscal year
progresses. Details of the Project Terra cost savings and
productivity with expected timing are contained in the presentation
for the Fourth Quarter Fiscal Year 2018 earnings call available
under the Investor Relations section of the Company's website at
www.hain.com.
Guidance, where adjusted, is provided on a non-GAAP basis and
excludes acquisition-related expenses, integration and
restructuring charges, start-up costs, costs associated with the
CEO Succession Agreement, unrealized net foreign currency gains or
losses, accounting review and remediation costs and other
non-recurring items that may be incurred during the Company's
fiscal year 2019, which the Company will continue to identify as it
reports its future financial results. Guidance also excludes the
impact of any future acquisitions.
The Company cannot reconcile its expected Adjusted EBITDA to net
income or adjusted earnings per diluted share to earnings per share
under "Fiscal Year 2019 Guidance" without unreasonable effort
because certain items that impact net income and other reconciling
metrics are out of the Company's control and/or cannot be
reasonably predicted at this time.
Effective July 1, 2017, due to
changes to the Company's internal management and reporting
structure, the United Kingdom
operations of the Ella's Kitchen® brand, which was previously
included within the United States
reportable segment, is included in the United Kingdom reportable segment. The prior
period segment information contained below has been adjusted to
reflect the Company's new operating and reporting structure.
1
|
This press release
includes certain non-GAAP financial measures, which are intended to
supplement, not substitute for, comparable GAAP financial measures.
Reconciliations of non-GAAP financial measures to GAAP financial
measures are provided herein in the tables "Reconciliation of GAAP
Results to Non-GAAP Measures".
|
2
|
Unless otherwise
noted all results included in this press release are from
continuing operations.
|
3
|
Refer to "Net Sales
Growth at Constant Currency and Adjusted for Acquisitions,
Divestitures and Other" provided herein.
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited and
dollars in thousands)
|
United
States
|
United
Kingdom
|
Rest of
World
|
Corporate/
Other
|
Total
|
NET
SALES
|
|
|
|
|
|
Net sales - Three
months ended 6/30/18
|
$
269,857
|
$
239,061
|
$
110,680
|
$
-
|
$
619,598
|
Net sales - Three
months ended 6/30/17
|
$
285,432
|
$
218,315
|
$
99,144
|
$
-
|
$
602,891
|
% change - FY'18 net
sales vs. FY'17 net sales
|
(5.5)%
|
9.5%
|
11.6%
|
|
2.8%
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
Three months ended
6/30/18
|
|
|
|
|
|
Operating
income
|
$
18,623
|
$
18,984
|
$
8,069
|
$
(29,096)
|
$
16,580
|
Non-GAAP adjustments
(1)
|
4,571
|
1,257
|
1,862
|
20,211
|
27,901
|
Adjusted operating
income
|
$
23,194
|
$
20,241
|
$
9,931
|
$
(8,885)
|
$
44,481
|
Operating income
margin
|
6.9%
|
7.9%
|
7.3%
|
|
2.7%
|
Adjusted operating
income margin
|
8.6%
|
8.5%
|
9.0%
|
|
7.2%
|
|
|
|
|
|
|
Three months ended
6/30/17
|
|
|
|
|
|
Operating
income
|
$
42,262
|
$
20,748
|
$
10,117
|
$
(65,953)
|
$
7,174
|
Non-GAAP adjustments
(1)
|
-
|
942
|
-
|
57,661
|
58,603
|
Adjusted operating
income
|
$
42,262
|
$
21,690
|
$
10,117
|
$
(8,292)
|
$
65,777
|
Operating income
margin
|
14.8%
|
9.5%
|
10.2%
|
|
1.2%
|
Adjusted operating
income margin
|
14.8%
|
9.9%
|
10.2%
|
|
10.9%
|
|
|
|
|
|
|
(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
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|
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|
|
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|
|
|
|
|
|
United
States
|
United
Kingdom
|
Rest of
World
|
Corporate/
Other
|
Total
|
NET
SALES
|
|
|
|
|
|
Net sales - Twelve
months ended 6/30/18
|
$
1,084,871
|
$
938,029
|
$
434,869
|
$
-
|
$
2,457,769
|
Net sales - Twelve
months ended 6/30/17
|
$
1,107,806
|
$
851,757
|
$
383,942
|
$
-
|
$
2,343,505
|
% change - FY'18 net
sales vs. FY'17 net sales
|
(2.1)%
|
10.1%
|
13.3%
|
|
4.9%
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
Twelve months ended
6/30/18
|
|
|
|
|
|
Operating
income
|
$
86,319
|
$
56,046
|
$
38,660
|
$
(74,985)
|
$
106,040
|
Non-GAAP adjustments
(1)
|
26,841
|
14,227
|
3,985
|
34,980
|
80,033
|
Adjusted operating
income
|
$
113,160
|
$
70,273
|
$
42,645
|
$
(40,005)
|
$
186,073
|
Operating income
margin
|
8.0%
|
6.0%
|
8.9%
|
|
4.3%
|
Adjusted operating
income margin
|
10.4%
|
7.5%
|
9.8%
|
|
7.6%
|
|
|
|
|
|
|
Twelve months ended
6/30/17
|
|
|
|
|
|
Operating
income
|
$
145,307
|
$
51,948
|
$
32,010
|
$
(119,842)
|
$
109,423
|
Non-GAAP adjustments
(1)
|
6,193
|
4,696
|
(110)
|
80,402
|
91,181
|
Adjusted operating
income
|
$
151,500
|
$
56,644
|
$
31,900
|
$
(39,440)
|
$
200,604
|
Operating income
margin
|
13.1%
|
6.1%
|
8.3%
|
|
4.7%
|
Adjusted operating
income margin
|
13.7%
|
6.7%
|
8.3%
|
|
8.6%
|
|
|
|
|
|
|
(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
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Webcast Presentation
Hain Celestial will host a
conference call and webcast today at 8:30 AM
Eastern Time to discuss its results and business outlook.
The webcast and any accompanying presentation will be available
under the Investor Relations section of the Company's website at
www.hain.com.
About The Hain Celestial Group, Inc.
The Hain
Celestial Group (Nasdaq: HAIN), headquartered in Lake Success, NY, is a leading organic and
natural products company with operations in North America, Europe, Asia
and the Middle East. Hain
Celestial participates in many natural categories with well-known
brands that include Alba Botanica®, Almond Dream®, Arrowhead
Mills®, Avalon Organics®, Bearitos®, Better Bean®, BluePrint®,
Casbah®, Celestial Seasonings®, Clarks™, Coconut Dream®, Cully
& Sully®, Danival®, DeBoles®, Earth's Best®, Ella's Kitchen®,
Empire®, Europe's Best®, Farmhouse
Fare™, Frank Cooper's®, FreeBird®,
Gale's®, Garden of Eatin'®, GG UniqueFiber™, Hain Pure Foods®,
Hartley's®, Health Valley®, Imagine®, JĀSÖN®, Johnson's Juice Co.®,
Joya®, Kosher Valley®, Lima®, Linda
McCartney's® (under license), Live Clean®, MaraNatha®,
Mary Berry (under license), Natumi®,
New Covent Garden Soup Co.®, Orchard House®, Plainville Farms®,
Queen Helene®, Rice Dream®, Robertson's®, Rudi's Gluten-Free
Bakery®, Rudi's Organic Bakery®, Sensible Portions®, Spectrum
Organics®, Soy Dream®, Sun-Pat®, Sunripe®, SunSpire®, Terra®, The
Greek Gods®, Tilda®, Walnut Acres®, WestSoy®, Yorkshire Provender®,
Yves Veggie Cuisine® and William's™. Hain Celestial has been
providing A Healthier Way of LifeTM since 1993. For more
information, visit www.hain.com.
Safe Harbor Statement
Certain statements contained in
this press release constitute "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are predictions based on
expectations and projections about future events and are not
statements of historical fact. You can identify forward-looking
statements by the use of forward-looking terminology such as
"plan", "continue", "expect", "anticipate", "intend", "predict",
"project", "estimate", "likely", "believe", "might", "seek", "may",
"will", "remain", "potential", "can", "should", "could", "future"
and similar expressions, or the negative of those expressions, or
similar words or phrases that are predictions of or indicate future
events or trends and that do not relate solely to historical facts.
You can also identify forward-looking statements by discussions of
the Project Terra strategic initiatives, the Company's potential
divestiture of its Hain Pure Protein business, and our future
performance and results of operations. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, levels of activity,
performance or achievements of the Company, or industry results, to
be materially different from any future results, levels of
activity, performance or achievements expressed or implied by such
forward-looking statements, and you should not rely on them as
predictions of future events. Forward-looking statements depend on
assumptions, data or methods that may be incorrect or imprecise and
may not be able to be realized. We do not guarantee that the
transactions and events described will happen as described (or that
they will happen at all). Such factors, include, among others, the
Company's beliefs or expectations relating to (i) the Company's
guidance for Fiscal Year 2019; (ii) the potential divestiture of
the Hain Pure Protein business during the first half of fiscal year
2019; (iii) the Company's ability to return our United States business to growth and generate
increased profitability; and (iv) the Company's ability to fuel
future results and value for stockholders; and the other risks
detailed from time-to-time in the Company's reports filed with the
United States Securities and Exchange Commission, including the
Annual Report on Form 10-K for the fiscal year ended June 30, 2018, and our quarterly reports. As a
result of the foregoing and other factors, the Company cannot
provide any assurance regarding future results, levels of activity
and achievements of the Company, and neither the Company nor any
person assumes responsibility for the accuracy and completeness of
these statements. All forward-looking statements contained herein
apply as of the date hereof or as of the date they were made and,
except as required by applicable law, the Company disclaims any
obligation to publicly update or revise any forward-looking
statement to reflects changes in underlying assumptions or factors
of new methods, future events or other changes.
Non-GAAP Financial Measures
This press release and the
accompanying tables include non-GAAP financial measures, including
net sales adjusted for the impact of Foreign currency, Acquisitions
and Divestitures and certain other items, including SKU
rationalization, as applicable in each case, adjusted operating
income, adjusted gross margin, adjusted net income, adjusted
earnings per diluted share, EBITDA, Adjusted EBITDA and operating
free cash flow. The reconciliations of these non-GAAP financial
measures to the comparable GAAP financial measures are presented in
the tables "Reconciliation of GAAP Results to Non-GAAP Measures"
for the three months and twelve months ended June 30, 2018 and 2017 and in the paragraphs
below. Management believes that the non-GAAP financial measures
presented provide useful additional information to investors about
current trends in the Company's operations and are useful for
period-over-period comparisons of operations. These non-GAAP
financial measures should not be considered in isolation or as a
substitute for the comparable GAAP measures. In addition, these
non-GAAP measures may not be the same as similar measures provided
by other companies due to potential differences in methods of
calculation and items being excluded. They should be read only in
connection with the Company's Consolidated Statements of Income
presented in accordance with GAAP.
The Company defines Operating Free Cash Flow as cash provided by
or used in operating activities from continuing operations (a GAAP
measure) less capital expenditures. The Company views Operating
Free Cash Flow as an important measure because it is one factor in
evaluating the amount of cash available for discretionary
investments.
For the 12 months ended June 30,
2018 and 2017, Operating Free Cash Flow from continuing
operations was calculated as follows:
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Twelve Months
Ended
|
|
|
|
|
6/30/18
|
|
6/30/17
|
|
|
|
|
(unaudited and
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
Cash flow provided by
operating activities - continuing operations
|
$
121,308
|
|
$
232,695
|
|
|
|
Purchases of
property, plant and equipment
|
(70,891)
|
|
(47,307)
|
|
|
|
Operating Free Cash
Flow - continuing operations
|
$
50,417
|
|
$
185,388
|
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|
|
|
|
|
|
The Company's Operating Free Cash Flow from continuing
operations was $50.4 million for the
12 months ended June 30, 2018, a
decrease of $135.0 million from the
twelve months ended June 30,
2017. The decrease in Operating Free Cash Flow was primarily
attributable to increased capital expenditures in the current year
and an increase in inventories and accounts receivable.
The Company believes presenting net sales at constant currency
provides useful information to investors because it provides
transparency to underlying performance in the Company's
consolidated net sales by excluding the effect that foreign
currency exchange rate fluctuations have on period-to-period
comparability given the volatility in foreign currency exchange
markets. To present this information for historical periods,
current period net sales for entities reporting in currencies other
than the U.S. dollar are translated into U.S. dollars at the
average monthly exchange rates in effect during the corresponding
period of the prior fiscal year, rather than at the actual average
monthly exchange rate in effect during the current period of the
current fiscal year. As a result, the foreign currency impact is
equal to the current year results in local currencies multiplied by
the change in average foreign currency exchange rate between the
current fiscal period and the corresponding period of the prior
fiscal year.
The Company provides net sales adjusted for constant currency,
acquisitions and divestitures, and certain other items including
SKU rationalization, as applicable in each case, to understand the
growth rate of net sales excluding the impact of such items. The
Company's management believes net sales adjusted for such items is
useful to investors because it enables them to better understand
the growth of our business from period-to-period.
The Company defines EBITDA as net income from continuing
operations (a GAAP measure) before income taxes, net interest
expense, depreciation and amortization, equity in net income of
equity method investees, stock based compensation expense and
unrealized currency gains. Adjusted EBITDA is defined as EBITDA
before acquisition-related expenses, including integration and
restructuring charges, and other non-recurring items. The Company's
management believes that these presentations provide useful
information to management, analysts and investors regarding certain
additional financial and business trends relating to its results of
operations and financial condition. In addition, management uses
these measures for reviewing the financial results of the Company
as well as a component of performance-based executive
compensation.
For the three months and twelve months ended June 30, 2018 and 2017, EBITDA and Adjusted
EBITDA from continuing operations was calculated as follows:
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
6/30/18
|
|
6/30/17
|
|
6/30/18
|
|
6/30/17
|
|
(unaudited and
dollars in thousands)
|
Net (loss)
income
|
$
(69,941)
|
|
$
313
|
|
$
9,694
|
|
$
67,430
|
Net (loss) income
from discontinued operations
|
(65,385)
|
|
1,817
|
|
(72,734)
|
|
1,889
|
Net (loss) income
from continuing operations
|
$
(4,556)
|
|
$
(1,504)
|
|
$
82,428
|
|
$
65,541
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
10,629
|
|
2,954
|
|
(887)
|
|
22,466
|
Interest expense,
net
|
6,804
|
|
4,914
|
|
24,339
|
|
18,391
|
Depreciation and
amortization
|
15,670
|
|
14,832
|
|
60,809
|
|
59,567
|
Equity in net income
of equity-method
investees
|
(235)
|
|
(84)
|
|
(339)
|
|
(129)
|
Stock-based
compensation expense
|
3,122
|
|
2,139
|
|
13,380
|
|
9,658
|
Stock-based
compensation expense in
connection with CEO succession agreement
|
(2,203)
|
|
-
|
|
(2,203)
|
|
-
|
Goodwill
impairment
|
7,700
|
|
-
|
|
7,700
|
|
-
|
Long-lived asset and
intangibles impairment
|
5,743
|
|
40,452
|
|
14,033
|
|
40,452
|
Unrealized currency
losses/(gains)
|
3,143
|
|
14,056
|
|
(2,027)
|
|
12,570
|
EBITDA
|
$
45,817
|
|
$
77,759
|
|
$
197,233
|
|
$
228,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related
expenses, restructuring, integration and
other charges
|
6,999
|
|
6,095
|
|
20,749
|
|
9,694
|
Accounting review and
remediation costs, net of insurance
proceeds
|
2,887
|
|
9,473
|
|
9,293
|
|
29,562
|
Warehouse/Manufacturing Facility start-up
costs
|
3,024
|
|
-
|
|
4,179
|
|
-
|
Plant closure related
costs
|
1,567
|
|
-
|
|
5,513
|
|
1,804
|
Recall and other
related costs
|
307
|
|
-
|
|
580
|
|
809
|
Litigation
expense
|
780
|
|
-
|
|
1,015
|
|
-
|
Machine break-down
costs
|
-
|
|
-
|
|
317
|
|
-
|
Co-packer
disruption
|
-
|
|
-
|
|
3,692
|
|
-
|
Losses on terminated
chilled desserts contract
|
-
|
|
2,583
|
|
6,553
|
|
2,583
|
Regulated packaging
change
|
-
|
|
-
|
|
1,007
|
|
-
|
2018 Project Terra
SKU rationalization
|
-
|
|
-
|
|
4,913
|
|
-
|
Toys "R" Us bad
debt
|
-
|
|
-
|
|
897
|
|
-
|
2017 Project Terra
SKU rationalization
|
-
|
|
-
|
|
-
|
|
5,360
|
U.K. deferred
synergies due to CMA Board decision
|
-
|
|
-
|
|
-
|
|
918
|
Realized currency
gain on repayment of GBP denominated
debt
|
-
|
|
(14,290)
|
|
-
|
|
(14,290)
|
Adjusted
EBITDA
|
$
61,381
|
|
$
81,620
|
|
$
255,941
|
|
$
264,956
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Balance Sheets
|
(unaudited and
in thousands)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
106,557
|
|
$
137,055
|
|
Accounts receivable,
net
|
252,708
|
|
225,765
|
|
Inventories
|
391,525
|
|
341,995
|
|
Prepaid expenses and
other current assets
|
59,946
|
|
46,179
|
|
Current assets of
discontinued operations
|
240,851
|
|
123,787
|
|
Total current
assets
|
1,051,587
|
|
874,781
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
310,172
|
|
291,866
|
Goodwill
|
|
1,024,136
|
|
1,018,892
|
Trademarks and other
intangible assets, net
|
510,387
|
|
521,228
|
Investments and joint
ventures
|
20,725
|
|
18,998
|
Other
assets
|
29,667
|
|
30,235
|
Noncurrent assets of
discontinued operations
|
-
|
|
175,104
|
|
Total
assets
|
$
2,946,674
|
|
$
2,931,104
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
229,993
|
|
$
186,193
|
|
Accrued expenses and
other current liabilities
|
116,001
|
|
106,727
|
|
Current portion of
long-term debt
|
26,605
|
|
9,626
|
|
Current liabilities
of discontinued operations
|
49,846
|
|
37,948
|
|
Total current
liabilities
|
422,445
|
|
340,494
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
687,501
|
|
740,135
|
Deferred income
taxes
|
86,909
|
|
98,346
|
Other noncurrent
liabilities
|
12,770
|
|
15,975
|
Noncurrent
liabilities of discontinued operations
|
-
|
|
23,322
|
Total
liabilities
|
1,209,625
|
|
1,218,272
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
1,084
|
|
1,080
|
|
Additional paid-in
capital
|
1,148,196
|
|
1,137,724
|
|
Retained
earnings
|
878,516
|
|
868,822
|
|
Accumulated other
comprehensive loss
|
(184,240)
|
|
(195,479)
|
|
|
|
1,843,556
|
|
1,812,147
|
|
Treasury
stock
|
(106,507)
|
|
(99,315)
|
|
Total stockholders'
equity
|
1,737,049
|
|
1,712,832
|
|
Total liabilities and
stockholders' equity
|
$
2,946,674
|
|
$
2,931,104
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Income
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Twelve Months Ended
June 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
619,598
|
|
$
602,891
|
|
$
2,457,769
|
|
$
2,343,505
|
Cost of
sales
|
|
494,501
|
|
459,029
|
|
1,942,321
|
|
1,824,109
|
Gross
profit
|
|
125,097
|
|
143,862
|
|
515,448
|
|
519,396
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
80,845
|
|
74,926
|
|
339,431
|
|
312,583
|
Amortization of
acquired intangibles
|
|
4,343
|
|
4,101
|
|
18,202
|
|
16,988
|
Acquisition related
expenses, restructuring,
integration and other charges
|
|
6,999
|
|
7,736
|
|
20,749
|
|
10,388
|
Accounting review and
remediation costs, net of
insurance proceeds
|
|
2,887
|
|
9,473
|
|
9,293
|
|
29,562
|
Goodwill
impairment
|
|
7,700
|
|
-
|
|
7,700
|
|
-
|
Long-lived asset and
intangibles impairment
|
|
5,743
|
|
40,452
|
|
14,033
|
|
40,452
|
Operating
income
|
|
16,580
|
|
7,174
|
|
106,040
|
|
109,423
|
|
|
|
|
|
|
|
|
|
Interest and other
financing expense, net
|
|
7,382
|
|
5,624
|
|
26,925
|
|
21,115
|
Other
expense/(income), net
|
|
3,360
|
|
184
|
|
(2,087)
|
|
430
|
Income from
continuing operations before income
taxes and equity in net income of equity-method
investees
|
|
5,838
|
|
1,366
|
|
81,202
|
|
87,878
|
Provision (benefit)
for income taxes
|
|
10,629
|
|
2,954
|
|
(887)
|
|
22,466
|
Equity in net income
of equity-method investees
|
|
(235)
|
|
(84)
|
|
(339)
|
|
(129)
|
Net (loss)
income from continuing operations
|
|
$
(4,556)
|
|
$
(1,504)
|
|
$
82,428
|
|
$
65,541
|
Net (loss)
income from discontinued
operations, net of tax
|
|
(65,385)
|
|
1,817
|
|
(72,734)
|
|
1,889
|
Net (loss)
income
|
|
$
(69,941)
|
|
$
313
|
|
$
9,694
|
|
$
67,430
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
common share:
|
|
|
|
|
|
|
|
|
Basic net (loss)
income per common share
from continuing operations
|
|
$
(0.04)
|
|
$
(0.01)
|
|
$
0.79
|
|
$
0.63
|
Basic net (loss)
income per common share
from discontinued operations
|
|
(0.63)
|
|
0.02
|
|
(0.70)
|
|
0.02
|
Basic net
(loss) income per common share
|
|
$
(0.67)
|
|
$
-
|
|
$
0.09
|
|
$
0.65
|
|
|
|
|
|
|
|
|
|
Diluted net (loss)
income per common share
from continuing operations
|
|
$
(0.04)
|
|
$
(0.01)
|
|
$
0.79
|
|
$
0.63
|
Diluted net (loss)
income per common share
from discontinued operations
|
|
(0.63)
|
|
0.02
|
|
(0.70)
|
|
0.02
|
Diluted net
(loss) income per common share
|
|
$
(0.67)
|
|
$
-
|
|
$
0.09
|
|
$
0.65
|
|
|
|
|
|
|
|
|
|
Shares used in the calculation
of net (loss) income per common share:
|
|
|
|
|
Basic
|
|
103,927
|
|
103,693
|
|
103,848
|
|
103,611
|
Diluted
|
|
103,927
|
|
103,693
|
|
104,477
|
|
104,248
|
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2018 GAAP
|
Adjustments
|
2018
Adjusted
|
|
2017 GAAP
|
Adjustments
|
2017
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
619,598
|
-
|
$
619,598
|
|
$
602,891
|
$
-
|
$
602,891
|
Cost of
sales
|
|
494,501
|
(5,346)
|
489,155
|
|
459,029
|
(942)
|
458,087
|
Gross
profit
|
|
125,097
|
5,346
|
130,443
|
|
143,862
|
942
|
144,804
|
Operating expenses
(a)
|
|
90,931
|
(4,969)
|
85,962
|
|
119,479
|
(40,452)
|
79,027
|
Acquisition related
expenses, restructuring,
integration and other charges
|
|
6,999
|
(6,999)
|
-
|
|
7,736
|
(7,736)
|
-
|
Accounting review and
remediation costs, net of
insurance proceeds
|
|
2,887
|
(2,887)
|
-
|
|
9,473
|
(9,473)
|
-
|
Goodwill
impairment
|
|
7,700
|
(7,700)
|
-
|
|
-
|
-
|
-
|
Operating
income
|
|
16,580
|
27,901
|
44,481
|
|
7,174
|
58,603
|
65,777
|
Interest and other
expense (income), net (b)
|
|
10,742
|
(3,143)
|
7,599
|
|
5,808
|
234
|
6,042
|
Provision (benefit)
for income taxes
|
|
10,629
|
(1,255)
|
9,374
|
|
2,954
|
14,332
|
17,286
|
Net (loss)
income from continuing operations
|
|
(4,556)
|
32,299
|
27,743
|
|
(1,504)
|
44,037
|
42,533
|
Net (loss)
income from discontinued operations, net of tax
|
|
(65,385)
|
65,385
|
-
|
|
1,817
|
(1,817)
|
-
|
Net (loss)
income
|
|
(69,941)
|
97,684
|
27,743
|
|
313
|
42,220
|
42,533
|
|
|
|
|
|
|
|
|
|
Diluted net (loss)
income per common share from continuing
operations
|
|
(0.04)
|
0.31
|
0.27
|
|
(0.01)
|
0.42
|
0.41
|
Diluted net (loss)
income per common share from
discontinued operations
|
|
(0.63)
|
0.63
|
-
|
|
0.02
|
(0.02)
|
-
|
Diluted net (loss)
income per common share
|
|
(0.67)
|
0.94
|
0.27
|
|
-
|
0.40
|
0.41
|
|
|
|
|
|
|
|
|
|
Detail of
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30, 2018
|
|
|
|
Three Months
Ended
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
Warehouse/Manufacturing Facility start-up
costs
|
|
|
$
3,024
|
|
|
|
$
-
|
|
Plant closure related
costs
|
|
|
2,015
|
|
|
|
-
|
|
Recall and other
related costs
|
|
|
307
|
|
|
|
-
|
|
Losses on terminated
chilled desserts contract
|
|
|
-
|
|
|
|
942
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
5,346
|
|
|
|
942
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
5,346
|
|
|
|
942
|
|
|
|
|
|
|
|
|
|
|
Intangibles
impairment
|
|
|
5,632
|
|
|
|
14,079
|
|
Long-lived asset
impairment charge associated with
plant closure
|
|
|
111
|
|
|
|
26,373
|
|
Accelerated
Depreciation on software disposal
|
|
|
461
|
|
|
|
-
|
|
Litigation
expense
|
|
|
780
|
|
|
|
-
|
|
Warehouse/Manufacturing
Facility start-up costs
|
|
|
188
|
|
|
|
-
|
|
Stock-based
compensation expense in connection
with CEO succession agreement
|
|
|
(2,203)
|
|
|
|
-
|
|
Operating expenses
(a)
|
|
|
4,969
|
|
|
|
40,452
|
|
|
|
|
|
|
|
|
|
|
Acquisition related
expenses, restructuring,
integration and other charges
|
|
|
6,999
|
|
|
|
7,736
|
|
Acquisition related
expenses, restructuring,
integration and other charges
|
|
|
6,999
|
|
|
|
7,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
|
2,887
|
|
|
|
9,473
|
|
Accounting review and
remediation costs, net of insurance
proceeds
|
|
|
2,887
|
|
|
|
9,473
|
|
|
|
|
|
|
|
|
|
|
Goodwill
impairment
|
|
|
7,700
|
|
|
|
-
|
|
Goodwill
impairment
|
|
|
7,700
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
27,901
|
|
|
|
58,603
|
|
|
|
|
|
|
|
|
|
|
Unrealized currency
losses
|
|
|
3,143
|
|
|
|
14,056
|
|
Realized currency
gain on repayment of GBP
denominated debt
|
|
|
-
|
|
|
|
(14,290)
|
|
Interest and other
expense (income), net (b)
|
|
|
3,143
|
|
|
|
(234)
|
|
|
|
|
|
|
|
|
|
|
Income tax related
adjustments
|
|
|
1,255
|
|
|
|
(14,332)
|
|
Provision (benefit)
for income taxes
|
|
|
1,255
|
|
|
|
(14,332)
|
|
|
|
|
|
|
|
|
|
|
Net income
from continuing operations
|
|
|
$
32,299
|
|
|
|
$
44,037
|
|
|
|
|
|
|
|
|
|
|
(a)Operating expenses include amortization
of acquired intangibles, selling, general, and administrative
expenses and long-lived asset and intangibles
impairment.
|
(b)Interest and other expense (income),
net include interest and other financing expense, net and other
(income)/expense, net.
|
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
June 30,
|
|
|
2018 GAAP
|
Adjustments
|
2018
Adjusted
|
|
2017 GAAP
|
Adjustments
|
2017
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
2,457,769
|
$
-
|
$
2,457,769
|
|
$
2,343,505
|
$
-
|
$
2,343,505
|
Cost of
sales
|
|
1,942,321
|
(27,200)
|
1,915,121
|
|
1,824,109
|
(7,205)
|
1,816,904
|
Gross
profit
|
|
515,448
|
27,200
|
542,648
|
|
519,396
|
7,205
|
526,601
|
Operating expenses
(a)
|
|
371,666
|
(15,091)
|
356,575
|
|
370,023
|
(44,026)
|
325,997
|
Acquisition related
expenses, restructuring,
integration and other charges
|
|
20,749
|
(20,749)
|
-
|
|
10,388
|
(10,388)
|
-
|
Accounting review and
remediation costs, net of
insurance proceeds
|
|
9,293
|
(9,293)
|
-
|
|
29,562
|
(29,562)
|
-
|
Goodwill
impairment
|
|
7,700
|
(7,700)
|
-
|
|
-
|
-
|
-
|
Operating
income
|
|
106,040
|
80,033
|
186,073
|
|
109,423
|
91,181
|
200,604
|
Interest and other
expense, net (b)
|
|
24,838
|
2,027
|
26,865
|
|
21,545
|
1,720
|
23,265
|
Provision (benefit)
for income taxes
|
|
(887)
|
39,133
|
38,246
|
|
22,466
|
29,883
|
52,349
|
Net income
from continuing operations
|
|
82,428
|
38,873
|
121,301
|
|
65,541
|
59,578
|
125,119
|
Net (loss)
income from discontinued operations, net of tax
|
|
(72,734)
|
72,734
|
-
|
|
1,889
|
(1,889)
|
-
|
Net income
|
|
9,694
|
111,607
|
121,301
|
|
67,430
|
57,689
|
125,119
|
|
|
|
|
|
|
|
|
|
Diluted net income
per common share from continuing
operations
|
|
0.79
|
0.37
|
1.16
|
|
0.63
|
0.57
|
1.20
|
Diluted net (loss)
income per common share from
discontinued operations
|
|
(0.70)
|
0.70
|
-
|
|
0.02
|
(0.02)
|
-
|
Diluted net income
per common share
|
|
0.09
|
1.07
|
1.16
|
|
0.65
|
0.55
|
1.20
|
|
|
|
|
|
|
|
|
|
Detail of
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
June 30, 2018
|
|
|
|
Twelve Months
Ended
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
Losses on terminated
chilled desserts contract
|
|
|
$
6,553
|
|
|
|
$
942
|
|
2018 Project Terra
SKU rationalization
|
|
|
4,913
|
|
|
|
-
|
|
Plant closure related
costs
|
|
|
5,958
|
|
|
|
464
|
|
Co-packer
disruption
|
|
|
3,692
|
|
|
|
-
|
|
Warehouse/Manufacturing Facility start-up
costs
|
|
|
4,179
|
|
|
|
-
|
|
Regulated packaging
change
|
|
|
1,007
|
|
|
|
-
|
|
Machine break-down
costs
|
|
|
317
|
|
|
|
-
|
|
Recall and other
related costs
|
|
|
580
|
|
|
|
73
|
|
2017 Project Terra
SKU rationalization
|
|
|
-
|
|
|
|
5,360
|
|
U.K. deferred
synergies due to CMA Board decision
|
|
|
-
|
|
|
|
366
|
|
Cost of
sales
|
|
|
27,200
|
|
|
|
7,205
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
27,200
|
|
|
|
7,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-lived asset
impairment charge associated with
plant closure
|
|
|
8,401
|
|
|
|
26,373
|
|
Intangibles
impairment
|
|
|
5,632
|
|
|
|
14,079
|
|
Toys "R" Us bad
debt
|
|
|
897
|
|
|
|
-
|
|
Stock-based
compensation acceleration associated
with Board of Directors
|
|
|
700
|
|
|
|
-
|
|
Litigation
expense
|
|
|
1,015
|
|
|
|
-
|
|
Accelerated
Depreciation on software disposal
|
|
|
461
|
|
|
|
-
|
|
Warehouse/Manufacturing Facility start-up
costs
|
|
|
188
|
|
|
|
-
|
|
Stock-based
compensation expense in connection
with CEO succession agreement
|
|
|
(2,203)
|
|
|
|
-
|
|
Plant closure related
costs
|
|
|
-
|
|
|
|
1,340
|
|
U.K. deferred
synergies due to CMA Board decision
|
|
|
-
|
|
|
|
551
|
|
Recall and other
related costs
|
|
|
-
|
|
|
|
736
|
|
Tilda fire insurance
recovery costs and other
start-up/integration Costs
|
|
|
-
|
|
|
|
947
|
|
Operating expenses
(a)
|
|
|
15,091
|
|
|
|
44,026
|
|
|
|
|
|
|
|
|
|
|
Acquisition related
expenses, restructuring,
integration and other charges
|
|
|
20,749
|
|
|
|
10,388
|
|
Acquisition related
expenses, restructuring,
integration and other charges
|
|
|
20,749
|
|
|
|
10,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounting review and
remediation costs, net of
insurance proceeds
|
|
|
9,293
|
|
|
|
29,562
|
|
Accounting review and
remediation costs, net of insurance
proceeds
|
|
|
9,293
|
|
|
|
29,562
|
|
|
|
|
|
|
|
|
|
|
Goodwill
impairment
|
|
|
7,700
|
|
|
|
-
|
|
Goodwill
impairment
|
|
|
7,700
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
80,033
|
|
|
|
91,181
|
|
|
|
|
|
|
|
|
|
|
Unrealized currency
(gains)/losses
|
|
|
(2,027)
|
|
|
|
12,570
|
|
Realized currency
gain on repayment of GBP
denominated debt
|
|
|
-
|
|
|
|
(14,290)
|
|
Interest and other
expense, net (b)
|
|
|
(2,027)
|
|
|
|
(1,720)
|
|
|
|
|
|
|
|
|
|
|
Income tax related
adjustments
|
|
|
(39,133)
|
|
|
|
(29,883)
|
|
Provision (benefit)
for income taxes
|
|
|
(39,133)
|
|
|
|
(29,883)
|
|
|
|
|
|
|
|
|
|
|
Net income
from continuing operations
|
|
|
$
38,873
|
|
|
|
$
59,578
|
|
|
|
|
|
|
|
|
|
|
(a)Operating expenses include amortization
of acquired intangibles, selling, general, and administrative
expenses and long-lived asset and intangibles
impairment.
|
(b)Interest and other expense, net include
interest and other financing expense, net and other
(income)/expense, net.
|
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
|
|
Net Sales Growth
at Constant Currency
|
|
|
(unaudited and in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
United
Kingdom
|
|
Rest of
World
|
|
|
|
|
Net sales -
Three months ended 6/30/18
|
$
619,598
|
|
$
239,061
|
|
$
110,680
|
|
|
|
|
Impact of
foreign currency exchange
|
(19,934)
|
|
(13,949)
|
|
(5,985)
|
|
|
|
|
Net sales on a
constant currency basis -
Three months ended 6/30/18
|
$
599,664
|
|
$
225,112
|
|
$
104,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - Three
months ended 6/30/17
|
$
602,891
|
|
$
218,315
|
|
$
99,144
|
|
|
|
|
Net sales growth on a
constant currency basis
|
(0.5)%
|
|
3.1%
|
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
United
Kingdom
|
|
Rest of
World
|
|
|
|
|
Net sales -
Twelve months ended 6/30/18
|
$
2,457,769
|
|
$
938,029
|
|
$
434,869
|
|
|
|
|
Impact of
foreign currency exchange
|
(79,959)
|
|
(54,419)
|
|
(25,540)
|
|
|
|
|
Net sales on a
constant currency basis -
Twelve months ended 6/30/18
|
$
2,377,810
|
|
$
883,610
|
|
$
409,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - Twelve
months ended 6/30/17
|
$
2,343,505
|
|
$
851,757
|
|
$
383,942
|
|
|
|
|
Net sales growth on a
constant currency basis
|
1.5%
|
|
3.7%
|
|
6.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Growth
at Constant Currency and Adjusted for Acquisitions, Divestitures
and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
United
States
|
|
United
Kingdom
|
|
Rest of
World
|
|
|
Net sales on a
constant currency basis -
Three months ended 6/30/18
|
$
599,664
|
|
$
269,857
|
|
$
225,112
|
|
$
104,695
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - Three
months ended 6/30/17
|
$
602,891
|
|
$
285,432
|
|
$
218,315
|
|
$
99,144
|
|
|
Acquisitions
|
3,538
|
|
-
|
|
3,165
|
|
373
|
|
|
Divestitures
|
(1,632)
|
|
(1,632)
|
|
-
|
|
-
|
|
|
Castle
contract termination
|
(6,773)
|
|
-
|
|
(6,773)
|
|
-
|
|
|
2017 Project
Terra SKU rationalization
|
(3,185)
|
|
(3,185)
|
|
-
|
|
-
|
|
|
2018 Project
Terra SKU rationalization
|
(12,093)
|
|
(11,165)
|
|
-
|
|
(928)
|
|
|
Inventory
realignment
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Net sales on a
constant currency basis adjusted for
acquisitions, divestitures and other - Three
months
ended 6/30/17
|
$
582,746
|
|
$
269,450
|
|
$
214,707
|
|
$
98,589
|
|
|
Net sales
growth on a constant currency
basis adjusted for acquisitions, divestitures
and other
|
2.9%
|
|
0.2%
|
|
4.8%
|
|
6.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tilda
|
|
Hain
Daniels
|
|
Ella's
Kitchen
|
|
Hain Celestial
Europe
|
|
Hain Celestial
Canada
|
Net sales growth -
Three months ended 6/30/18
|
14.5%
|
|
8.5%
|
|
7.5%
|
|
17.7%
|
|
9.3%
|
Impact
of foreign currency exchange
|
(5.6)%
|
|
(6.6)%
|
|
(6.5)%
|
|
(9.4)%
|
|
(4.4)%
|
Impact of acquisitions
|
0.0%
|
|
(2.0)%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
Impact of castle contract termination
|
0.0%
|
|
4.5%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
Net sales on a
constant currency basis adjusted for
acquisitions, divestitures and other - Three
months
ended 6/30/18
|
9.0%
|
|
4.3%
|
|
1.0%
|
|
8.3%
|
|
4.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
United
States
|
|
United
Kingdom
|
|
Rest of
World
|
|
|
Net sales on a
constant currency basis -
Twelve months ended 6/30/18
|
$
2,377,810
|
|
$
1,084,871
|
|
$
883,610
|
|
$
409,329
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - Twelve
months ended 6/30/17
|
$
2,343,505
|
|
$
1,107,806
|
|
$
851,757
|
|
$
383,942
|
|
|
Acquisitions
|
16,000
|
|
-
|
|
14,796
|
|
1,204
|
|
|
Divestitures
|
(14,967)
|
|
(7,999)
|
|
(6,968)
|
|
-
|
|
|
Castle
contract termination
|
(14,401)
|
|
-
|
|
(14,401)
|
|
-
|
|
|
2017 Project
Terra SKU rationalization
|
(14,359)
|
|
(14,359)
|
|
-
|
|
-
|
|
|
2018 Project
Terra SKU rationalization
|
(25,357)
|
|
(23,154)
|
|
-
|
|
(2,203)
|
|
|
Inventory
realignment
|
33,999
|
|
33,999
|
|
-
|
|
-
|
|
|
Net sales on a
constant currency basis adjusted for
acquisitions, divestitures and other - Twelve
months
ended 6/30/17
|
$
2,324,420
|
|
$
1,096,293
|
|
$
845,184
|
|
$
382,943
|
|
|
Net sales
growth on a constant currency
basis adjusted for acquisitions, divestitures
and other
|
2.3%
|
|
(1.0)%
|
|
4.5%
|
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tilda
|
|
Hain
Daniels
|
|
Ella's
Kitchen
|
|
Hain Celestial
Europe
|
|
Hain Celestial
Canada
|
Net sales growth -
Twelve months ended 6/30/18
|
14.0%
|
|
8.7%
|
|
13.7%
|
|
18.5%
|
|
12.5%
|
Impact
of foreign currency exchange
|
(5.8)%
|
|
(6.5)%
|
|
(6.6)%
|
|
(10.5)%
|
|
(4.9)%
|
Impact of acquisitions
|
0.0%
|
|
(2.4)%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
Impact of castle contract termination
|
0.0%
|
|
2.5%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
Impact of divestures
|
0.0%
|
|
1.1%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
Net sales on a
constant currency basis adjusted for
acquisitions, divestitures and other - Twelve
months
ended 6/30/18
|
8.2%
|
|
3.3%
|
|
7.0%
|
|
8.0%
|
|
7.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/hain-celestial-reports-fourth-quarter-and-fiscal-year-2018-financial-results-300702972.html
SOURCE The Hain Celestial Group, Inc.